REPUBLIKA.CO.ID, JAKARTA - Fosun International Limited, a manufacturing company of China plans to collaborate with a national steel company, PT Gunung Gahapi Sakti, to build a blast furnace factory in Medan, North Sumatra.
Director General of Manufacturing Industry at the Ministry of Industry, Susanto Panggah, said that Fosun would pour the finance up to 200 million USD in two stages. Fosun is still negotiating some points with the Indonesian Investment Coordinating Board (BKPM) and the project will start in two to three years.
"Fosun and Gunung Gahapi will establish a new company to produce up to one million tons slabs (semi finished steel products)," Panggah said on Friday.
The joint will produce 500 thousand tons slabs and it will be one million tons in the final stage. Such products can be used for ship and automotive industries.Chinese government still limits the capacity of its domestic steel production, so many Chinese companies decided to expand to other countries, including Indonesia.
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